UNCLE SAM, HR DIRECTOR:
AFTER READING the first four chapters, you know how to determine whether your business qualifies as small and how to create compliant subcontracting relationships with other companies—not always the easiest task. But in addition to imposing requirements governing the companies you work with, Uncle Sam has a lot to say about the employees you can hire.
In this chapter, we will discuss which individuals your small business cannot (or should not) hire, and how to spot employee-related red flags. And remember our discussion of the “right of first refusal” in Chapter 3? We will also discuss which incumbent contract employees you must offer to hire—even if you would rather not.
Broadly speaking, your small business may pick its own employees, with minimal governmental interference (although the government may evaluate some proposals more favorably if you propose highly experienced personnel in key positions). However, the government